The US dollar recorded a decline on Tuesday despite concerns over a second wave of Covid-19 infection, with investors scrutinizing the U.S. election on November 3.
On Monday, market players have made panic sales but foreign exchange market activity has not changed much.
Thus, analysts warn that investors are clearly taking a cautious stance after the United States, Russia and France set a new daily record in Covid-19 infections. Analysts added that the currency exchange movement did not move much because some market players refused to place bets by the election date.
The US dollar index, which measures the greenback against major currencies, continued to decline by 0.17% at 92.892 as of 10.45 p.m.
Issues such as U.S. stimulus package negotiations and Brexit negotiations including the implications of rising Covid-19 infection cases on fourth-quarter GDP growth are more likely to drive the strengthening of the Euro and sterling against the US dollar.
ECB policymakers are expected to meet on Thursday, however expectations that market reactions are limited.
